What Is a FHLB Homebuyer Dream Program Grant? How to Qualify and Apply
The Homebuyer Dream Program (HDP) is a grant program of the Federal Home Loan Bank of New York (FHLBNY) that gives eligible first-time buyers up to $30,000 per household toward a down payment, closing costs and homebuyer counseling, with the 2026 rounds open through November 27, 2026 or until funds run out. You do not apply to the Bank. A lender that is an FHLBNY member applies for you, and other Federal Home Loan Banks run similar grants under different names.
What is the Federal Home Loan Bank Homebuyer Dream Program?
It is a grant program offered through approved members of the Federal Home Loan Bank of New York. FHLBNY says the HDP "provides grant funds, up to $30,000," and that the money can help cover down payment, closing costs and homebuyer counseling (FHLBNY, HDP page, 2026 round, read October 15, 2026). FHLBNY describes HDP as a homeownership set-aside program that it manages within rules set by the Federal Housing Finance Agency (FHFA).
The name belongs to FHLBNY. The Federal Home Loan Bank System has 11 regional banks, established in 1932 by the Federal Home Loan Bank Act (FHFA, page last modified July 22, 2026). Other banks in the System use other names for comparable grants. Examples are Home$tart at FHLB Des Moines, Downpayment Plus at FHLB Chicago and the Homebuyer Equity Leverage Partnership (HELP) at FHLB Dallas. If you do not live in a state served by FHLBNY, ask a lender which Bank serves your area and what it calls its grant.
What do the key numbers look like?
The table shows what each source publishes today. Amounts, income limits and funding windows change by Bank and by year, so confirm the current terms before you rely on any of them.
| Figure | Value | Source and date |
|---|---|---|
| Number of Federal Home Loan Banks | 11 regional banks | FHFA, page last modified July 22, 2026 |
| Share of earnings each Bank must put into its Affordable Housing Program (AHP) | 10 percent | FHFA, Affordable Housing Program page, last modified September 3, 2026 |
| Base per-household limit for homeownership set-aside grants under AHP rules | $22,000, adjusted upward over time with FHFA's House Price Index | FHFA, Affordable Housing Program page, last modified September 3, 2026 |
| FHLBNY Homebuyer Dream Program, maximum grant | Up to $30,000 per household; household income at or below 80% of area median income | FHLBNY, HDP page, 2026 round, read October 15, 2026 |
| FHLBNY HDP retention period | 5 years from closing | FHLBNY, HDP Suite training presentation, undated, read October 15, 2026 |
| FHLB Dallas HELP, maximum grant | $25,000 per household for homes in New Mexico and Texas, $20,000 elsewhere; income at or below 80% of area median income; 5-year retention | FHLB Dallas, HELP page, 2026, read October 15, 2026 |
| FHLB Chicago Downpayment Plus, maximum grant | The lesser of $10,000 or 25% of the first mortgage amount; $1,000 buyer contribution on the standard program | FHLB Chicago, Downpayment Plus page, read October 15, 2026 |
| FHLB Des Moines Home$tart, grant amount | $15,000, or $25,000 for homes in Hawaii | FHLB Des Moines, Home$tart page, 2026 program, read October 15, 2026 |
Sources: FHFA on the Federal Home Loan Bank System, FHFA on the Affordable Housing Program, FHLBNY Homebuyer Dream Program, FHLBNY HDP Suite overview, FHLB Dallas HELP, FHLB Chicago Downpayment Plus and FHLB Des Moines Home$tart.
The $22,000 figure is a regulatory base limit that FHFA raises over time, and each Bank sets its own cap, so it is not the amount a buyer will receive. FHLBNY's published HDP maximum is higher than the base figure. Treat the Bank's own page as the current answer for its district.
Where does the money come from?
It comes from each Federal Home Loan Bank's own Affordable Housing Program, not from Dreamfund. FHFA says each Bank "must contribute 10 percent of its earnings to its AHP" and that setting up a homeownership set-aside program is "elective for each FHLBank." That is why some Banks run a homebuyer grant and others describe theirs differently.
Funds are limited. FHLBNY says its 2026 HDP Suite rounds close November 27, 2026 and "may close earlier if funds are exhausted," and that the 2027 rounds open February 8, 2027. FHLB Dallas listed its HELP funds as $0 available as of September 15, 2026, after allocating $17 million for the year. Ask early.
Who qualifies for the Homebuyer Dream Program?
You generally qualify if you are a first-time homebuyer, your household income is at or below 80% of area median income (AMI), you complete homebuyer counseling, and you use a lender that is an FHLBNY member. Here is how each requirement reads at FHLBNY.
- First-time homebuyer. FHLBNY defines it as a person with "no ownership in a principal residence during the 3-year period ending on the date of the purchase." It also lists exceptions for certain single parents, displaced homemakers and owners of property not permanently affixed to a foundation (FHLBNY, HDP Suite training presentation).
- Income. HDP requires household income at or below 80% of AMI. HDP Plus covers households above 80% AMI and up to 120% AMI in New York and New Jersey (150% in Puerto Rico and the U.S. Virgin Islands). HDP Wealth Builder is for households at or below 120% AMI in New York and New Jersey, and requires buyers to qualify as first-generation homebuyers.
- Counseling. FHLBNY says recipients "are required to complete a homebuyer counseling program," provided by an agency accredited by HUD or another listed accrediting body. Grant funds may pay the counseling fee, paid directly to the agency.
- Lender. "Grant recipients must originate a mortgage with a participating FHLBNY member." The member decides initial eligibility.
Other Banks set their own rules. FHLB Dallas, for example, also requires 80% of AMI or less, counseling and a five-year commitment to keep the home. FHLB Des Moines refers buyers to a separate income and purchase price limits page. Check your district's page for the current rules.
How do you apply for the grant?
You start with a participating lender, and the lender submits the request. The Bank does not take applications from buyers. FHLBNY says members must first enroll in each annual round, and that a member submits a reservation request for the household. Once FHLBNY approves it, the Bank issues a 120-day commitment to the member (FHLBNY, HDP Suite training presentation).
- Find a participating member lender. Ask banks and credit unions in your area whether they are members of the Federal Home Loan Bank that serves your state and whether they are enrolled in the current round.
- Check your income against the program limit. The lender compares household income with the AMI for your area and household size.
- Complete homebuyer counseling. Choose an agency that meets the program's accreditation rule and keep your completion certificate.
- Let the lender request the grant. The lender reserves funds for your household when you have a purchase in progress and the program rules are met.
- Close on the home. The grant is paid through the lender and applied to the purchase, which lowers the cash you need to bring to closing. See how cash to close works for the full picture.
What is the retention requirement?
At FHLBNY, HDP carries a five-year retention period from the date of closing, and FHLBNY says "repayment of a prorated portion of the HDP grant may be required" if the rule is not met. HDP Plus and HDP Wealth Builder do not require retention documentation (FHLBNY, HDP Suite training presentation). Other Banks differ. FHLB Chicago, for example, says its grants are forgiven monthly over a five-year retention period.
Here is an illustration only, not a program rule. If a buyer received a hypothetical $10,000 grant with a five-year retention period and the repayment were prorated by the time remaining, selling after four years would leave one year of the period, or $2,000, to repay. Ask your lender how your Bank calculates repayment and what triggers it before you close.
Can you combine the Homebuyer Dream Program with other help?
Sometimes. Whether grants can be combined depends on each program's rules and on your lender and loan type. FHLBNY says HDP Wealth Builder can be layered with HDP or HDP Plus for "up to $60,000 in grant funding per eligible household," which shows layering inside its own suite. Beyond that, ask your loan officer which sources can be stacked on your loan.
- State and local programs. Read how state programs differ by state and the overview of first-time buyer down payment assistance. For a broader view, see how to stack down payment sources and the down payment assistance hub.
- Higher incomes. If you are above an 80% limit, see why higher-earning buyers still use assistance. HDP Plus exists for some households above 80% AMI in New York and New Jersey.
- Employers. Some employers offer housing assistance. Employer contributions are not currently supported on Dreamfund.
- Gifts from family and friends. 22% of first-time buyers received a gift or loan from family or friends toward their down payment (NAR, 2025 Profile of Home Buyers and Sellers, released November 4, 2025). The buyer's lender decides what gift documentation it accepts. Fannie Mae's Selling Guide, for conventional loans, says "gifts must be evidenced by a letter signed by the donor" (Fannie Mae Selling Guide B3-4.3-04, updated February 4, 2026).
Closing costs and the down payment are different pieces of the cash you bring. Our guides on closing costs for first-time buyers, how to lower cash to close and down payment versus closing costs explain where a grant helps. The first-time homebuyer hub collects the rest.
How can family and friends help alongside a grant?
Dreamfund is building a way for family and friends to contribute toward a buyer's down payment, alongside any program grant. Each gift is recorded with who gave it, their relationship to the buyer, and a signed no-repayment attestation. The buyer's lender decides what gift documentation it accepts.
Important Notice: Dreamfund is not a bank and does not hold customer funds. Upon launch, each customer's savings will be held in a deposit account opened in the customer's own name at an FDIC-member institution. FDIC deposit insurance applies to deposits at the member bank subject to applicable limits. Dreamfund itself is not FDIC-insured and does not guarantee any savings outcome. The Homebuyer Dream Program is administered by individual FHLB districts; program terms, income limits, grant amounts, and funding availability vary by district and change annually. The information in this article is educational and general in nature. Consult a HUD-approved housing counselor or licensed mortgage professional for guidance specific to your situation.
Frequently Asked Questions
What is the FHLB Homebuyer Dream Program?
The Homebuyer Dream Program (HDP) is a grant program offered through members of the Federal Home Loan Bank of New York. FHLBNY says it provides grant funds of up to $30,000 per household, which can help cover down payment, closing costs and homebuyer counseling. Other Federal Home Loan Banks run their own homebuyer grants under different names, with different amounts and rules.
Who qualifies for the FHLB Homebuyer Dream Program?
At FHLBNY, HDP is for first-time homebuyers whose household income is at or below 80% of area median income. Recipients must complete a homebuyer counseling program and must get a mortgage through a participating FHLBNY member. HDP Plus covers some households above 80% of area median income, up to 120% in New York and New Jersey. Other Banks set their own rules, so confirm the current terms with a participating lender.
How do I access the FHLB Homebuyer Dream Program?
You do not apply to the Federal Home Loan Bank directly. A participating member lender enrolls in the program round and submits a reservation request for your household. Ask a lender whether it is a member of the Bank that serves your state and whether it is enrolled in the current round.
Does the FHLB Homebuyer Dream Program grant have to be repaid?
It is a grant, but it comes with conditions. At FHLBNY, HDP has a five-year retention period from closing, and a prorated portion of the grant may have to be repaid if the rule is not met. HDP Plus and HDP Wealth Builder do not require retention documentation. Other Banks differ, so confirm the retention and repayment terms with your lender before closing.
Can I combine the FHLB Homebuyer Dream Program with other down payment assistance?
It depends on the program, your lender and your loan type. FHLBNY says its Wealth Builder grant can be layered with HDP or HDP Plus for up to $60,000 per eligible household. Ask your loan officer which other assistance sources can be used together on your loan and what each one requires.
Family and friends can help alongside a grant.
Dreamfund is building a way for the people who want to help to contribute toward your down payment. Each gift is recorded with who gave it, their relationship to the buyer, and a signed no-repayment attestation. The buyer's lender decides what gift documentation it accepts.
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